## **A J B HUDSON MEMORIAL CHARITY** 

Registered Charity Number 227925 

**__________________________________________________________** 

## **TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENT** 

**YEAR ENDED 5 APRIL 2021** 

**_________________________________________________________** 



## **Reference and Administrative Information** 

## **Trustees** 

The Colonel of The Mercian Regiment (ex-officio) represented by Colonel Harry John Lowles C.B.E., formerly of The Worcestershire Regiment* 

Charles Alexander Burnell Hudson Colonel John Hamlyn Bryant, formerly of The Worcestershire Regiment Captain David James Bezzant, formerly of The Worcestershire Regiment Adam Elliot Knowles David Charles Waldron, County Chairman, Worcestershire Royal British Legion* Gabriel Charles More Hudson 

## **Treasurer** 

Neil Smith 

## **Secretary** 

Dr Amanda Tanfield 

## **Chaplain** 

The Reverend Canon Roger Spiller 

## **Principal Office** 

Wyke Manor, Main Street, Wick, Pershore, Worcestershire, WR10 3NZ 

## **Charity Number: 227925** 

## **Accountants** 

Folkes Worton, 15-17 Church Street, Stourbridge, West Midlands, DY8 1LU 

## **Bankers** 

CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ 

## **Investment Managers*** 

M&G Charities, PO Box 9038 Chelmsford, CM99 2XF 

CCLA Investment Management Ltd, COIF Charity Funds, 85 Queen Victoria Street, London, EC4V 4ET 

- Status changed in-year by Constitution Resolution adopted 6 October 2020 (see paragraphs 3 & 13.) 

1 



## **Report of the Trustees for the Year Ended 5 April 2021** 

1. The Trustees present their annual report and financial statement for the Trust for the year ended 5 April 2021. The financial statements have been prepared in accordance with the Trust’s governing document, the Charities Act 2011 and the Charities Statement of Recommended Practice (FRS 102). 

## **Structure, Governance and Management** 

2. The Trust is a registered charity, registered with the Charity Commission on 4 November 1965 under registered charity number 227925, and is constituted by Schemes of the Charity Commission dated 15 April 1958, 25 August 1965, 11 March 1997 and 12 September 2001, and the Resolution adopted on 6 October 2020. 

3. Up until 6 October 2020, the composition of the Trustee Board was as set out in the Scheme of the Charity Commission dated 11 March 1997. This provided for a minimum of eight Trustees, made up of one ex-officio Trustee, two nominated Trustees and five co-opted Trustees. Co-opted Trustees served a term of five years and nominated Trustees served a term of four years. Under the amending Resolution adopted on 6 October 2020 (see paragraph 13), the Trust will have a minimum of five and a maximum of eight Trustees (currently there are seven). The categories of ex-officio and nominated Trustees were abolished. Existing Trustees were reappointed for periods of three, four or five years; future Trustees will be appointed for five years. 

4. At the regular Trustees’ meetings, the Trustees agree the broad strategy and areas of activities for the Trust, including consideration of investment, reserves and risk management policies and performance. The Trustees meet twice a year and as/when required. The day-to-day administration is delegated to the Secretary. 

5. New Trustees are appointed by the existing Trustees. The Trust complies with the ICSA guidance note _Charity Trustee Recruitment_ . Trustee recruitment takes into account experience, empathy and knowledge of the Trust as well as the need to maintain the skills and composition of the Trustee Board. The Trustees actively seek those with a knowledge of the local regiments and/or service. 

6. On appointment, Trustees sign a declaration of acceptance and of willingness to act in the trusts of the Charity, in accordance with the Trust’s governing document. The induction process follows the ICSA good practice guide, with the induction programme for a newly-appointed trustee being led by the Secretary, to include a meeting with the Chairman and Secretary on the powers and responsibilities of the Trustee board and the Trust’s assets, investments, policies and activities. The welcome pack includes, amongst other information and guidance, a brief history of the Trust, Trustee board composition and recent board minutes, the last three years’ annual reports and accounts, a copy of the Trust governing document, and a copy of the Charity Commission guidance booklet, _The essential trustee: what you need to know, what you need to do_ .  Trustees and officers are also required to sign the Trust’s Code of Conduct and Data Protection Policy. 

7. All Trustees give of their time freely and no Trustee remuneration was paid during the year. Details of Trustee expenses and related party transactions would be disclosed in the accounts. There were none to be disclosed in this financial year. Trustees are required to disclose all relevant interests and register them with the Secretary and, in accordance with the Trust’s policy, to withdraw from decisions where a conflict of interest arises. 

2 



## **Objectives and Activities for the Public Benefit** 

8. The Trust was established through the Will of the late Caroline Elizabeth Hudson of Wyke Manor, Wick, near Pershore, Worcestershire, in memory of her son, Lieutenant Alban John Benedict Hudson, who died in action during the first World War. 

9. The object of the Trust is the assistance of disabled ex-service personnel of the Armed Forces of the Crown and ex-service personnel who are in need. The Trust does not actively fundraise and seeks to continue the charitable work desired by the Settlor through the careful stewardship of its existing resources, the income to be applied for the relief of ex-service personnel of the Armed Forces of the Crown who are disabled and/or in need (preference being given to ex-members of The Worcestershire Regiment and descendant Regiments, currently The Worcestershire and Sherwood Foresters Regiment and The Mercian Regiment). 

10. The charity achieves its object through the provision of affordable Trust housing, situated in Wick.  As well as paying for the upkeep and repair of the Trust’s properties, Trust income may be applied for the upkeep and repair of the chapel at Wyke Manor (consecrated in Lieutenant A J B Hudson’s memory) and the performance of divine service therein, so long as services remain open to Trust residents and staff. 

11. The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and when considering their approach to applications from prospective tenants of the Trust properties. 

## **Achievements and Performance** 

12. The year has been dominated by the ongoing Covid-19 pandemic. The beginning of lockdown necessitated the cancellation of the April 2020 meeting of the Board of Trustees. Essential business was completed by email. The Trustees met by videoconference in October 2020. Although there is no provision for virtual meetings in the Trust’s constitution, which predates the widespread availability of IT, this is allowed under Charity Commission Covid-19 guidance. Trustees are in the process of considering a constitutional amendment to give the Board the permanent option of conducting business electronically. 

13. Last year, the Trust reported that it was pursuing an amendment of its governing document to give it more flexibility on the Trustee Board size and composition. It was proving impossible to find a second nominated Royal British Legion representative, and similar problems were anticipated in finding a new ex-service member of The Worcestershire Regiment (which has been subject to two mergers since the Trust was founded) to act as the ex-officio representative, both of which were constitutional requirements. Trustees therefore adopted a Resolution on 6 October 2020 to abolish the categories of ex-officio and nominated Trustee and set the Board size at 5-8 Trustees. The Board will, if possible, include an ex-service member from Worcestershire; a representative nominated by the Worcestershire County Committee of the Royal British Legion; and a member of the Hudson (Settlor’s) family. 

14. The Resolution adopted by Trustees on 6 October 2020 also amended the constitutional provisions governing financial investments, which were archaically worded, hard for the layperson to interpret, and in parts obsolete. Investment powers are now simply aligned with the latest government legislation, currently the Trustee Act 2000. 

3 



15. Financial turmoil associated with the Covid-19 pandemic brought to a head Trustees’ long-standing dissatisfaction with the performance of the Trust’s unit trust investments, managed by M&G Charities and CCLA Investment Management Ltd., in comparison with expected returns on investment property. In September 2020, an ideal investment property in Wick village came onto the market. At their 6 October 2020 Board meeting, Trustees formally decided to liquidate the unit trust portfolio and use the proceeds to purchase this property. The purchase completed in February 2021 and tenants were found the same month. The projected annual rental income is more than double that received from the unit trusts. 

16. There has been no turn-over of Trust beneficiary tenancies over the past year, with all seven Trust beneficiary properties being let for the full period. A number of routine maintenance and refurbishment tasks have been completed. Rents for these seven properties are currently set at some two-thirds below market rates. 

## **Financial Review** 

17. The Trust’s work is entirely reliant on rental income and, until October 2020, investment return from its unit trust portfolio. As reported in paragraph 15, the Trust reinvested its unit trust portfolio into an investment property. The Trust’s gross income for the year amounted to £28,626 and expenditure to £10,435. Liquidation of the unit trust portfolio produced a gain of £52,951. Details are shown in the accounts for the year. The balances in the Trust’s CAF bank accounts at the year-end were as follows: 

- CAF Bank – Gold Account £6,645 

- CAF Bank – CafCash Account £1,000 

## **Reserves Policy** 

18. The Trustees maintain an Extraordinary Repairs Fund, as authorised by the Scheme dated 11 March 1997. The Trustees maintain revenue reserves at a level which allows the Trust to meet short term operating requirements (planned and unforeseen maintenance and other operating expenses of its estate) and to cover any periods of reduced rental income, and to fund larger projects, such as property improvements, in the longer term. Trustees are currently working on amending the Trust’s reserves policy and constitutional provisions in line with the investment decisions reported in paragraph 15. 

Approved by the Trustees and signed on their behalf by: 


## **Charles Alexander Burnell Hudson** 

**Chair of Trustees** 

4 



B.HU
792
Folk¢s Wollon LLP
15-17 Cbvrch Sire
Stourbridge
Wc5t Midlands
DY8 ILU

AJ.& HUDSON MEMORIAL TRUST
CONTENfs OF THE STATEMENTS OF ACCOU
FOR THE YEAR ENDED 5 APRIL 2021
Poge
Accountants, report
Income and expenditure account
B81ance sheet
Notes to tht F￿a￿e1a] statements

J.B. HUD
ORI
ACCOUPUANTS. REPORT
HEYE
REND
We report on the accounts for the period ended 5 April 2021 set out 011 Pages 2 to 5.
Re5pectlve r¢sponslbllltles of trnstees And 8etollntants
The ¢harity'S trustees arc responsible for thc prcparauon of tbe financial statemcnts. Thc charity's truyiccs ¢on5ider
that an audit l5 Eiot requircd for this year (under Section 144 {21 of the Charities Act 2011} and that all illdepeudent
examination is required.
It is our responsibility to..
- exa￿Ulle the accounts under Section 145 ofilie 2011 ACL
- follow the procedures laid down in the Gener81 Directions 8iven by the Charity Commission {uDder Section 145
{5llb) of the 2011 Aci)., alld
- Éiale whether ptirticu12r matters have ¢ome to our attet)tiott.
Basffis 0(our report
Our ¢xaminxiion was fj8rri¢d out iu *¢¢ordaTh￿ with th¢ G¢net81 Dir¢¢uon$ given by Th¢ Charity Commis$ion.
n]snation inGlud¢5 a r¢vscw of th¢ aGGounting T¢rords kwt bythe ¢h8rity and a ¢o]rp8rison of th¢ a¢¢owits
prescnted with those records. It a150 inch]dc8 consideratioTh of any unusual i*ms or disc105ur65 in the accounts,
and seeking explanations from you as tN5tces conccrning such nutters. The procedures undertaken do not
provide all th¢ ¢vid¢tt¢e tbat would bc requir¢d in an audit. and consequently no opinion is given as to whether
th¢ &¢counts pr¢s¢nl a'tru¢ and fair view. and th¢ T¢POrt i$ limited lo those matters set out in the statements below.
Reporting &¢countonts' 5taternent
In cotjncction with our cxaminatiotl, no matt¢r h•¥ ¢tsJn¢ lo our att¢ntion.'
(11 which giv¢s us rrfystsnabl¢ ¢ay$¢ to b¢li¢ve thar in Any m2ierial ￿speCt the requrenwits
- to kecp accountills records accordance with sectio￿ 41 of the A¢t'
- ￿ prepare 8ccounts in accord with the accounting record5 and to colnply with the accounting wuireTneThts
of the 2011 Act
Ikav¢ not be¢n m¢L or
(2) in which. in our OPiEJion. atttntion Should be drawn in ord¢r to enoble proper understanding of th¢ a￿O￿nts 10
be ￿￿ched.
Folkes Worton LLP
ChArterod Actountants
15-17 Church Street
Slourbridge
West Midlands
DY8 ILU
S O¢tober 2021
Pa￿]

A.J.B. HUDSON MEMORIAL TRUST
STATEMEINT OF FINANCIAL ACTIVITI
FOR THE YEAR ENDED 5 APRIL 202
Unrc8trictcd Restricted
iticome
income
nd8
fijnds
Total
bjnds
2021
Total
fijiids
2020
Endovrnient
futtds
Notes
COME
Rents received Ibeneficiariesl
Rents teceiv¢d linvtStrrKnt)
Garage rental
Uividend Income trom urtit twsts
CAF & COIF inieresr
23,847
1.670
468
2.615
26
23.847
1.670
468
2,615
26
23.489
4,280
65
TOTAL IPICOME
28,626
28.626
27.834
Salary and cxpense5 of secretary
Audii and attourtiAttcy charges
Professional fees
ttiting frcs
In$uThnr¢
Repairs attd maititeJJaD¢¢ of Trust Hous¢
Bank charges
Chaplain's ¢xpEns
TOTAL EXPENDITURE
1,700
696
1.457
615
2.362
3,136
69
400
1,700
696
1,457
615
2 J62
3.136
69
400
1.700
672
2,260
8202
60
400
10,435
10.435
13,294
NET INCOMEI{EXPENDITURE)
N¢1 gainFJllosses} on investnieni$
NET MOVEMENT IN FUNDS
14,540
52.951
71,142
71,142
14.S40
RECOIYCILIATION OF FUNDS
Total fund5 bTOUEhi forward
TOTAL FUNDS CARIUED FORWARD
221.771
292,913
221.771
292913
207
31
221,771
Page 2

A.J.B. HUDSON MEMORIAL TRUST
T SAPIUL202
2021
2020
Notes
FtXED ASSETS
Tangible a8sets
Inves￿ents at hi5tOTLcal cost
296 J21
66,321
105,597
296J21
171,918
CURRENT ASSETS
Debiers
Cash at bank
4.100
7,645
2,630
50,5(X)
11,805
53,130
CREDrroRS
Amounts fallin8 due within one year
IL>ng terni
7,213
8,000
3,277
15.213
3.277
NET CURRENT ASSETS
13.408}
49.853
NET ASSETS
292.953
221.771
CAPITAL AND RESERVES
Capital aecouLI
Extraordinary r¢paiT5 fwid
Rev¢nu¢ r¢5¢rv¢5
124.111
2.314
166.488
2.254
95.406
TOTAL FUNDS
2929L3
221771
The finkneiil stAtettrrtts on pages 2 to 3 were approved by the trustees on 5 Ociober 2021 and signed on their behalf by..
on 07110r21 é 14..
Mr C.A.B. Hudson ICh*lnnan)
The notes on p*8es 4 to 5 form part of th¢s¢ fiJ)aDrial stat¢m¢nts.
Page 3

FOR THE YEAR ENDLD 5 APRIL 2021
I CHARITY EXPENDITURE ANALYSIS
2021
2020
salary a￿] exp￿￿¢5 of S￿retary
1.7(KJ
The SeeteEary{siw¢ Awil 2017) 1$ th¢ Chairfs sisier-in-iaw.
2 TANGIBLE FIXED ASSETS
Hou5e5, land
Chapel
ond ¢Dttages Fumiiure &
I Wick
Total
COST
Ai 6 April 2020
Addi110115
66,320
234).000
65
66,385
230,0(KI
At 5 Aptil 2021
65
DEPRECIATION
At 6 Apnl 2020
Chor8e foryear
64
At 3 Ay,;1202I
04
NET BOOK VALUE
Ai 6 April 2020
66,321
At 5 Arffil 2021
290.321
Market
value at
051tMr2021
MarkeE
vakne at
05104121)20
2,690,ODO
1.419.766
A new propcrty was PUT¢hased in February 2021. N.B. Pmious yearpropertyvaluaiions used UWTanc¢ T¢buitd
estimate5. This yetr8 fwte is A fiLll tDark£tvllh]3tion' the Tebuild esllmate for CODJparisoll is £1.643.071
3 1TrUANGIBLE FIXED ASSETS
M3Tk¢¢
Market
V81u¢ 21
v*hw at
0510412021 0610412020
Cost at
0&0412020
Addition4 Prvfit I l(k85
disposals
OD sale
Cost at
05A)412021
V#riAblE Inv¢stuwn
COIF Chaiitics Inve51menl
Fund Income ShÈrys (4.4651
48,743
176,6831
27,940
64,156
COIF IDvesttDent
Accumujation ShaTes12721
21,217
153,2051
31,988
43.835
Clwsfund- E4uitiE8
Investsnethi Ful￿{2.381)
35,637
I28.6(￿)
16.977)
27,328
TOTAL INVESTMXNTS
158548
135319
All Unit Trusts were sold in October 2020 and the PToceeth reinvtsted proptxty.
Page 4

HUDS
NOTES TO THE ACCOUNTS
FOR THL YEAR ENDED 5 APRIL2021
4 DEBTORS.. AMouTrns FALLING DUE W￿HIN ONE YEAR
2021
2020
Prepaid insurdnce
D¢posii Proiects(fft Schemc
2J84
.776
4.160
2.110
520
5 CASH AT BANK
2021
2020
CA V ChaTlty S¥ivI￿¥ A¢L(K4ni
COIF ChaTiliBs Account
CAF Gold A¢¢ouni
1.00
67
49.433
6.645
7.645
50,500
Th¢ COIFCharititt% A¢couDI was ¢knsed in thiobtr 2020.
6 CREDITORS: AMOUNTS FALLING DVE WITHIN ONE YEAR
2W21
2020
A¢¢Ned maintenane¢loth
Accrued accounthncy fc¢
Prepaid 8aTrgE re￿ts1 inrtin
TenanL D¢posits
2,401
696
1340
1,776
1085
672
520
7 CREDITORS: LONG TERM
2020
8,000
8.000
The Chainnan I0￿ed £12,000 inter¢51 free for Property purchas¢ in Oerober 20201£4.0(M) 5in¢t r¢paidl.
8 CAPITAL AND RESEKVES
ExtrAorditiary
rePa￿S
Iljnd
C8pitsI
attounl
Revenue
yeserves
Toial
At 6 April 2020
SurplU￿(dericItl for the yeDr
A2￿Ual ¢onttibution
2,254
95,406
71.142
1601
221,771
71,142
At 5 April 2021
2,314
166,488
292,913
Pige 5